The future of loans: it’s artificial intelligence

The future of loans: it’s artificial intelligence

When you hear the word ‘loan’ what do you think of? Hours buried under piles of paperwork, crippling fees and that terrible feeling that your credit score just isn’t good enough?

Enter Artificial Intelligence, the technology that is shaking up the loans industry like a martini James Bond would be proud of. The AI comparison tool used by Loan Options is the first of its kind for asset financing in Australia and allows customers to compare the most relevant lenders and offers tailored to their specific circumstances. It’s faster, it’s easier and it’s way more personalised.

Gone are the days of lengthy, time-consuming loan applications. Now your loan could be approved and the money in your account as soon as 24 hours later depending on the type of loan you applied for. Getting funds for your personal, vehicle or business loans has never been simpler.

But how does AI work?

AI is a collection of advanced technologies that change the way machines learn and behave. Essentially it is the effort to make humans more efficient and machines more human. Don’t think Ultron, bent on world domination. Think of a bunch of algorithms collecting data to give customers more choice and control over their lending. These algorithms are able to securely and simultaneously analyse vast amounts of data meaning that customers receive a fast and individually tailored service. This information allows the customer to see the best and most cost-effective offers for their set of circumstances.

In a nutshell, Loan Options AI works like this:

1. You enter in your details and the details of the asset you wish to buy (the more information you enter the more effective the algorithm will be).

2. The algorithm uses this data to analyse which lenders and offers are best for you. This doesn’t just look at your credit score but takes into consideration all the information provided.

3. The algorithm shows you not only the offers that are relevant but predicts which lenders will approve your application and which ones won’t (and it tells you why they won’t).

4. From there you can make the most informed decision and apply immediately. One of the Loan Options team will touch base within 10 minutes of the application submission.

What are the benefits of this AI transformation?

If you aren’t already convinced that Loan Option’s AI tool is better than spending hours at the bank, here are a few more reasons.

1. You get a hyper-personalised customer experience

The Loan Options AI analyses your needs and personal finances alongside data from thousands of financial products in real-time using predictive modelling and lots of other complex and geeky things. You are then able to see personally tailored offers from best-fitting to worst as well as predictive approval. Once an application has been made our team then negotiates the best rate and outcome for you. With AI the information and decisions are in your hands, not in the hands of a broker.

2. Speed and Convenience

Paperwork is a thing of the past (something the planet will be grateful for) with all forms easily filled out and processed from any device. This means you can apply for a loan from the comfort of your sofa or the cockpit of the Millenium Falcon… provided you can get reception in a galaxy far far away.

3. Your credit score isn’t everything

There’s no need to worry anymore if you don’t have a long credit history and your score isn’t up to scratch. We know that life isn’t always perfect, sometimes bills are paid late, or maybe you’re a young person trying to start a business with no credit history to speak of. Our AI looks at more than just credit score with our algorithms capturing complex patterns across a customer’s data outside of their credit history. Using this information, we’re able to find the right lender for your situation and give predictive approval.

What does the future hold for AI in the lending industry?

Increasingly you’ll see AI popping up all over the place in the financial sector. In PwC’s 2020 AI survey, they predict that soon everyone will be using it with a focus on customer intelligence. Don’t worry, this doesn’t mean the robots will be taking over. It means that customers are increasingly demanding a more personalised service, more quickly and they’re using different technologies to get it.

This expansion of Al technology is all well and good, but it’s how we use that technology to translate into value for the customer that’s important. At Loan Options we’ve taken the time to understand this technology in order to match borrowers with lenders relevant to their circumstances (we have over 45 partners). This means looking at all factors, not just credit score and guiding customers through the process every step of the way so that you can buy your dream house, car or business in the fastest possible time.

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